Home Prices in California are over 3x higher than the US average. And 30% higher than the 2nd most expensive state.
The average home value in San Francisco is the highest in the country at nearly $1.4 million.
Why is California’s real estate so expensive?
Simple supply and demand. With great weather, a massive tech scene, and strong economic growth, lots of people want to live in California. Yet the state does a very poor job of building new housing to accommodate these people.
The result is sky-rocketing real estate prices as more and more people try to squeeze into the same housing stock that has existed for decades.
Governor Gavin Newsom has pledged to deliver 3.5 million new housing units by 2025, however, the state is starting off the decade 84% behind their annual target.